China Steel Correlations

1723 Stock  TWD 92.30  0.50  0.54%   
The current 90-days correlation between China Steel Chemical and Formosa Chemicals Fibre is 0.48 (i.e., Very weak diversification). The correlation of China Steel is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

China Steel Correlation With Market

Good diversification

The correlation between China Steel Chemical and DJI is -0.01 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding China Steel Chemical and DJI in the same portfolio, assuming nothing else is changed.
  
The ability to find closely correlated positions to China Steel could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace China Steel when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back China Steel - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling China Steel Chemical to buy it.

Moving together with China Stock

  0.879962 Yeou Yih SteelPairCorr
  0.750051 YuantaP shares TaiwanPairCorr

Moving against China Stock

  0.835269 Asmedia TechnologyPairCorr
  0.823008 LARGAN PrecisionPairCorr
  0.822454 MediaTekPairCorr
  0.786669 Wiwynn CorpPairCorr
  0.490050 YuantaP shares TaiwanPairCorr
  0.446510 Chunghwa Precision TestPairCorr
  0.432357 Asustek ComputerPairCorr
  0.430057 Fubon MSCI TaiwanPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
13011326
20021301
20021326
29121326
29121301
20022912
  
High negative correlations   
29122105
21051301
21051326
20022105

Risk-Adjusted Indicators

There is a big difference between China Stock performing well and China Steel Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze China Steel's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

China Steel Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with China Steel stock to make a market-neutral strategy. Peer analysis of China Steel could also be used in its relative valuation, which is a method of valuing China Steel by comparing valuation metrics with similar companies.
 Risk & Return  Correlation